Literacy Involves Families Together Act

(Sec. 2) Extends through FY 2004 the authorization of appropriations for such Even Start programs, and increases the amounts authorized.

(Sec. 3) Requires State plans to assure that State educational agencies (SEAs) will encourage local educational agencies (LEAs) and individual schools participating in a program assisted under ESEA title I part A (Improving Basic Programs Operated by Local Educational Agencies), to use part A funds to offer family literacy services, if the LEA or school determines that a substantial number of students they serve under part A have parents who do not have a secondary school diploma or its recognized equivalent or who have low levels of literacy.

(Sec. 4) Directs the Secretary of Education to: (1) reserve an increased portion of part B Even Start funds for migrant programs, outlying areas, and Indian tribes, under specified conditions; (2) award a competitive demonstration grant of sufficient amount and duration for a potentially high-quality family literacy program in a prison that houses women and their preschool age children; (3) ensure coordination of family literacy programs under Even Start with similar programs operated by the Bureau of Indian Affairs (BIA); and (4) reserve specified portions of Even Start excess funds for scientifically-based research on family literacy by the National Institute for Literacy.

Limits the Federal share of program costs to 35 percent after the eighth year of Even Start program assistance.

Authorizes States to use a portion of Even Start funds to provide technical assistance and training to subgrantees (partnerships of LEAs and eligible organizations) to improve the quality of their family literacy services, giving priority to low-quality programs, provided that such State use of funds for a fiscal year does not result in a decrease from the level of activities and services provided to program participants in the preceding year.

Requires Even Start programs to use research-based techniques for helping children learn to read, as well as for helping adults where appropriate research is available.

Allows an Even Start program, despite specified age limitations, to permit children eight years of age or older to participate if such program collaborates with a part A program and part A funds are used to pay the cost of providing part B Even Start services to such children.

Requires an SEA, in awarding subgrants to continue an Even Start program after the first year, to review the progress of each eligible entity in meeting program goals described in the State plan (as well as, under current law, evaluating the program based on State-developed program quality indicators).

Eliminates the eight-year limitation on a subgrantee's receiving Even Start funds.

Sets the same limits on the Federal share of renewed subgrants as on Even Start grants.

Directs the National Institute for Literacy to use certain reserved Even Start funds for scientifically-based research to determine: (1) the most effective ways of improving literacy skills of adults with reading difficulties; and (2) how family literacy services can best provide parents with knowledge and skills to support their children's literacy development. Requires such research to be carried out through an entity, including a Federal agency, with expertise in doing longitudinal studies of children's literacy skills development, and that has developed effective interventions to help children with reading difficulties.

(Sec. 5) Requires State applications for Even Start grants to describe how the State will encourage programs and projects assisted under Even Start to offer family literacy services if the program or project serves a substantial number of migratory children who have parents who do not have a high school diploma or its recognized equivalent or who have low levels of literacy.

(Sec. 6) Defines family literacy services under ESEA as services provided to participants on a voluntary basis that are of sufficient intensity in terms of hours, and of sufficient duration, to make sustainable changes in a family, and that integrate all of the following activities: (1) interactive literacy activities between parents and their children; (2) training for parents regarding how to be the primary teacher for their children and full partners in the education of their children; (3) parent literacy training that leads to economic self-sufficiency; and (4) an age-appropriate education to prepare children for success in school and life experiences.

(Sec. 7) Amends the Education Amendments Act of 1978 to require BIA-operated family literacy programs, under the early childhood education program for Indian children or other programs, to be coordinated with Even Start family literacy programs under ESEA.